The Goldman Sachs Group (NYSE:GS) Given New $1,010.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Goldman Sachs’ price target from $1,220 to $1,010 while maintaining a “sector perform” rating, implying roughly 14% upside from the reported $884.15 share price.
• Analyst sentiment remains cautious: MarketBeat reports an overall “Hold” consensus, with 13 Hold ratings and an average price target of $1,054.18.
• Goldman Sachs delivered a strong quarter, reporting $17.01 in EPS and $18.68 billion in revenue, beating estimates by wide margins; revenue increased 23% year over year, driven by equities trading and investment-banking activity.

The Goldman Sachs Group (NYSE:GS - Get Free Report) had its price objective lowered by stock analysts at Royal Bank Of Canada from $1,220.00 to $1,010.00 in a report issued on Wednesday, Benzinga reports. The brokerage presently has a "sector perform" rating on the investment management company's stock. Royal Bank Of Canada's price objective would suggest a potential upside of 14.23% from the company's current price.

Several other analysts have also recently issued reports on the company. Wells Fargo & Company reduced their price objective on The Goldman Sachs Group from $1,325.00 to $1,175.00 and set an "overweight" rating on the stock in a research note on Friday, September 25th. Weiss Ratings downgraded shares of The Goldman Sachs Group from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday. Citigroup reissued a "market perform" rating on shares of The Goldman Sachs Group in a research report on Wednesday. Jefferies Financial Group set a $1,299.00 price objective on The Goldman Sachs Group in a research report on Wednesday, July 15th. Finally, JPMorgan Chase & Co. upped their price target on The Goldman Sachs Group from $900.00 to $955.00 and gave the company a "neutral" rating in a report on Wednesday, July 15th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, thirteen have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $1,054.18.

The Goldman Sachs Group Price Performance

Shares of GS traded down $7.76 during mid-day trading on Wednesday, hitting $884.15. 374,015 shares of the company were exchanged, compared to its average volume of 2,203,428. The company has a 50 day moving average of $984.44 and a 200-day moving average of $989.10. The stock has a market cap of $257.44 billion, a price-to-earnings ratio of 13.68, a price-to-earnings-growth ratio of 0.98 and a beta of 1.29. The company has a debt-to-equity ratio of 3.17, a quick ratio of 0.63 and a current ratio of 0.63. The Goldman Sachs Group has a 1-year low of $740.01 and a 1-year high of $1,153.99.

The Goldman Sachs Group (NYSE:GS - Get Free Report) last released its earnings results on Tuesday, October 13th. The investment management company reported $17.01 earnings per share for the quarter, topping analysts' consensus estimates of $12.86 by $4.15. The Goldman Sachs Group had a net margin of 15.53% and a return on equity of 19.16%. The business had revenue of $18.68 billion for the quarter, compared to analyst estimates of $16.83 billion. During the same period last year, the company posted $12.25 EPS. The business's revenue was up 23.0% on a year-over-year basis. Analysts expect that The Goldman Sachs Group will post 67.48 EPS for the current fiscal year.

Hedge Funds Weigh In On The Goldman Sachs Group

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Sky Investment Group LLC boosted its stake in shares of The Goldman Sachs Group by 0.9% during the second quarter. Sky Investment Group LLC now owns 1,168 shares of the investment management company's stock valued at $1,181,000 after purchasing an additional 10 shares in the last quarter. Warren Street Wealth Advisors LLC raised its holdings in shares of The Goldman Sachs Group by 3.9% in the second quarter. Warren Street Wealth Advisors LLC now owns 269 shares of the investment management company's stock valued at $272,000 after purchasing an additional 10 shares during the last quarter. First Financial Group Corp raised its position in The Goldman Sachs Group by 4.7% in the first quarter. First Financial Group Corp now owns 246 shares of the investment management company's stock worth $208,000 after acquiring an additional 11 shares during the period. Meadow Creek Wealth Advisors LLC grew its stake in The Goldman Sachs Group by 1.7% in the 1st quarter. Meadow Creek Wealth Advisors LLC now owns 673 shares of the investment management company's stock valued at $569,000 after buying an additional 11 shares in the last quarter. Finally, DecisionMap Wealth Management LLC increased its holdings in The Goldman Sachs Group by 3.2% during the 2nd quarter. DecisionMap Wealth Management LLC now owns 350 shares of the investment management company's stock worth $354,000 after acquiring an additional 11 shares during the period. Hedge funds and other institutional investors own 71.21% of the company's stock.

Key Headlines Impacting The Goldman Sachs Group

Here are the key news stories impacting The Goldman Sachs Group this week:

• Positive Sentiment: Powerful third-quarter earnings beat: Goldman reported diluted EPS of $17.01 versus the $12.86 consensus and revenue of $18.68 billion versus $16.83 billion expected. Revenue rose 23% year over year and net income increased 29% to $5.29 billion. Goldman Sachs quarterly profit rises on equities strength
• Positive Sentiment: Trading and dealmaking drove results: Equities revenue surged 72% to $6.44 billion, while investment-banking fees rose 21% to $3.22 billion and advisory fees reached a record $1.65 billion. Management said deal activity remains robust despite some delayed IPOs. Goldman Q3 earnings beat on strong equities and investment banking revenues
• Positive Sentiment: Shareholder returns and wealth management momentum: Goldman returned $4.49 billion to common shareholders, including $3 billion of buybacks, and reported a record $2.1 trillion in wealth-management assets. The board also declared a $5 quarterly dividend, or $20 annualized. Goldman Sachs supervised record wealth management assets
• Neutral Sentiment: Leadership uncertainty eased: CEO David Solomon said there is no succession transition or timeline underway, reducing a near-term governance overhang. Goldman Sachs profits jump as CEO says no plans to exit
• Negative Sentiment: Mixed trading composition: The equities surge was partly offset by weaker fixed-income and rates trading, raising questions about whether the exceptional trading environment can persist.
• Negative Sentiment: Valuation and macro concerns remain: Morgan Stanley maintained a Hold rating and a $1,145 target, citing late-cycle risks. GS also trades below its 50-day and 200-day moving averages, while inflation, elevated rates and geopolitical uncertainty could weigh on future dealmaking. Goldman Sachs strong earnings surprise but late-cycle risks remain

The Goldman Sachs Group Company Profile

The Goldman Sachs Group, Inc is a global financial services company headquartered in New York City. Founded in 1869, the firm provides services to corporations, financial institutions, governments, individuals and other clients through its investment banking, markets, asset management and wealth management businesses.

Goldman Sachs advises clients on mergers and acquisitions, financing and other strategic transactions, and facilitates trading in equities, fixed income, currencies and commodities.

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